Insurance startup Clover Health shrinks loss to $22M in 2017

Clover Health, an insurance startup backed by Google's parent company Alphabet, diminished its losses from $35 million in 2016 to $22 million in 2017, according to Bloomberg.

Clover initially only offered plans for Medicare Advantage enrollees in New Jersey, but it recently expanded to markets in Georgia, Pennsylvania and Texas. Revenue grew from $184 million in 2016 to $267 million in 2017. The organization aims to leverage data analysis and preventative health initiatives to reduce insurance costs.

If Clover identifies treatable customer conditions, they dispatch health workers to try and administer care that could keep the patient out of expensive hospitals.

Medicare recently dropped Clover's rating from three and a half stars out of five to three stars, which will reduce the amount the government pays Clover for certain claims going forward. Clover CEO and co-founder Vivek Garipalli said the company now has structures in place to address customer concerns before they are reported to Medicare.

"We went from having zero strategy to having a defined strategy," Mr. Garipalli told Bloomberg.

Mr. Garipalli estimates Clover will see $330 million in revenue in 2018 based on enrollment projections.

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